IMPLEMENTING THE NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT NEPAD NOVEMBER 2002 nepad

1. IMPLEMENTING THE NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT NEPAD NOVEMBER 2002 www.nepad.org

2. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 1. PRIMARY OBJECTIVE • To eradicate poverty; • To place African countries, both individually and collectively on a path of sustainable growth and development; • To halt the marginalisation of Africa in the globalisation process; • To accelerate the empowerment of women.

3. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 2. PRINCIPLES • • NEPAD is an holistic, comprehensive and integrated • sustainable development initiative for the • economic and social revival of Africa. • • African ownership and leadership; • Anchoring the redevelopment of the continent • on the resources and resourcefulness • of the African people; • Accelerating and deepening • regional and continental • economic integration; • Building the competitive- • ness of African countries • and the continent; • A new partnership with • the industrialized world.

4. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 3. STRATEGIC FOCUS OF THE PROGRAMME • To reduce the risk profile of doing business in Africa; • To create the conditions conducive for investment, high economic growth and sustainable development; • To increase Africa’s competitiveness in the world economy; • To transform the unequal and donor/recipient relationship with the developed countries and multilateral institutions to a new partnership that is based on mutual responsibility and respect.

5. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 4. TOP PRIORITIES • 4.1Establishing the Conditions for Development : • Peace and security; • Democracy, political, economic and • corporate governance with a focus on • public financial management; • Regional co-operation and integration; • Capacity building.

6. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • 4.2 Priority Sectors • Agriculture; • Human development with a focus on health, • education, science and technology and skills • development; • Building and improving infrastructure, including • Information and Communication Technology, • Energy, Transport and Water; • Promoting diversification of production and • exports, including promotion of agro-industries, • manufacturing, mining, mineral beneficiation • and tourism; • Accelerating intra-Africa trade and improving • access to markets of developed countries. • The environment

7. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • 4.3 Mobilising Resources • • Increasing domestic savings and investments; • • Improved management of public revenue • and expenditure; • • Increasing capital flows through further • debt reduction, increased ODA flows and • foreign direct investment; • • Improving Africa’s share in global trade.

8. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 5. DESIRED OUTCOMES • Africa becomes more effective on conflict prevention and the establishment of enduring peace on the continent; • Economic and political governance, democracy and the protection of human rights become the norm in every African country; • Effective poverty eradication and an accelerated pace of achieving international development goals; • Increased capital flows and investments to the continent, both domestic and foreign;

9. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 5. DESIRED OUTCOMES (continued…) • Increased levels of ODA to the continent and its effective utilisation; • Africa becomes more effective in terms of policy development on an international level, ensuring that the continent’s needs are taken into account, for instance, in WTO negotiations; • Regional integration is further accelerated; and • Higher levels of sustainable economic growth in Africa are achieved.

10. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 6. PROGRESS TO DATE • Policy Framework document approved by the OAU Summit of Heads of State and Government (HSIC) in July 2001; • Heads of State Implementation Committee mandated by the OAU Summit to manage the further development of the programme; • HSIC composed of three Heads of State and Government from each of the OAU regions meets for the first time in October 2001; • The HSIC appoints a Steering Committee and Secretariat to co-ordinate the prepa- ration of detailed implementable program- mes covering a limited number of priorities;

11. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • The detailed implementation programmes covering all the areas prioritised by the HSIC were prepared with the support of the OAU Secretariat, The African Development Bank, the United Nations Economic Commission for Africa and the regional economic community structures. • Inputs were sourced also from the United Nations system, the Bretton Woods Institutions, the European Union and the OECD;

12. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • After endorsement by the OAU Summit in July 2001, the promoters of the programme made a presen- tation to the G8 leaders in Genoa in late July 2001; • The G8 responded to the invitation to build a new partnership with African leaders by appointing a task team of personal representatives to prepare a detailed response to NEPAD; • The G8 leaders presented their response to the African leaders in the form of The G8 African Action Plan on 27 June 2002 in Kananaskis, Canada

13. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 7. OUTCOME OF THE AU SUMMIT 2002 • Overwhelming endorsement of the NEPAD programme; • The Mandate of the HSIC extended by another year. • Strong commitment to constitutionality, democracy and good governance; • HSIC increased by one member per AU region; • Member states encouraged to adopt the Declaration on Democracy, Political, Economic and Corporate Governance and accede to African Peer Review Mechanism.

14. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 8. CURRENT FOCUS • Operationalising the African Peer Review Mechanism • Further developing Programmes of Action and specific interventions for: - Market Access, Industrialization, Increasing Intra-Africa Trade and Diversification of Exports; - Science and Technology, and the establishment of Regional Centres of Excellence • Coordinating and facilitating implementation of projects

15. Specific Energy Project Examples Specific Energy Project Examples Specific Energy Project Examples TAN-ZAM Line 700km 330KV interconnector from Pensulo, Zambia to Mbeya, Tanzania Feasibility Study underway 2003-2005 160 million TAN-KEN Line 200km 330KV interconnector from Arusha, Tanzania to Nairobi, Kenya 2003-2005 40 million MAL-MOZ Line 200km 330KV interconnector from Tete, Mozambique to Blantyre, Malawi Aerial Survey and De-mining complete, feasibility study to be completed 31 December 2002 2003-2005 40 million NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 9. PRIORITY ACTIONS AND INTERVENTIONS Examples of Projects a. Energy Sector Project Examples Implementa- tion Period Project Title Description Status Value USD Feasibility Study underway

16. DRCANSA Line 4000km 400KV interconnector from Inga, DRC to SA via Angola and Namibia Formation of Steering Committee, Working Group, and independent company as JV between utilities (Eskom, Nampower, Ene, Snel) 2004-2007 500 million – 1.6 billion Mepanda Uncua Power Project 1200-1600 Mwe downstream of Cahorra Bassa, Mozambique Feasibility study complete. Moz. govt. canvassing interest from international investors. Envisaged commissioning date: 2010 1.5 – 2 billion DRC-Zambia Reinforcement of existing Tx lines from Inga, DRC to Luano, Zambia 2003-2005 510 million Zongo-Sanga Rehabilitation of existing Hydro plant in Kinshasa, DRC to increase/restore capacity from 17 to 95 MWe Technical scope for plant and infrastructure identifies and assessed and costed. 2003-2004 25 million NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT Energy Sector Project Examples continued… Implementa- tion Period Project Title Description Status Value USD Feasibility Study underway

17. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT Energy Sector Project Examples (continued…) NEPAD’s role: • Interact with respective governments to accelerate initiatives and coordinate working groups to drive projects • Encourage governments/utilities to prioritise projects as part of national expansion plans • Encourage the creation of appropriate legislative frameworks for private or public partnerships • Facilitate long-term risk cover for projects

18. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT Establishment of African Energy Fund and NEPAD Funding Commission NEPAD Funding Commission - Proposed alignment with NEPAD and Investment Advisory Council (IAC) and International Chamber of Commerce (ICC) - To facilitate investment of funding by development partner agencies into infrastructure projects in Africa African Energy Fund - Proposed fund to invest in energy and related projects in Africa; - Primary aim to develop interconnections between African countries; - First project identified: • Western Corridor Transmission Project (DRCANSA HV Tx Line) Status: Feasibility study underway Linked projects include telecommunications, computer centers of learning, smelters, roads, schools, and clinics. Costs: Between US$500 million and US$ 1.6 million

19. Tunisia Morocco Western Sahara Algeria Libya Egypt Mauritania Senegal Mali Eritrea Niger The Gambia Sudan Chad Djibouti Burkina Faso Guinea- Bissau Guinea Côte D’Ivoire Nigeria Ethiopia Ghana Sierra Leone Central African Republic Cameroon Somalia Liberia Togo Benin Uganda Equatorial Guinea Rwanda Kenya Gabon Seychelles Democratic Republic of the Congo Burundi Republic of the Congo Zanzibar Cabinda Tanzania Malawi Angola Zambia Mozambique Zimbabwe Madagascar Namibia ESKOM ESKOM Botswana Mauritius ENTERPRISES ENTERPRISES Swaziland Republic of South Africa Lesotho NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT Isreal, Palestine Iraq, Turkey Jordan Europe Arab Mashreq POWER POOLS AND INTERCONNECTIONS Spain Northern Power Pool Western Power Pool Eastern/Southern Power Pool Major Network and Direction of Flow Minor Network and Direction of Flow Planned Interconnection and Direction of Flow

20. Tunisia Morocco Western Sahara Algeria Libya Egypt Mauritania Senegal Mali Eritrea The Gambia Niger Sudan Chad Djibouti Burkina Faso Guinea- Bissau Guinea Côte D’Ivoire Nigeria Sierra Leone Ethiopia Ghana Cameroon Central African Republic Somalia Liberia Togo Benin Uganda Equatorial Guinea Rwanda Kenya Gabon Democratic Republic of the Congo Burundi Republic of the Congo Cabinda Tanzania Malawi Angola Zambia Mozambique Zimbabwe Namibia Botswana Swaziland Republic of South Africa Lesotho NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT POTENTIAL FUTURE AFRICAN GRID Existing Networks Planned Expansion Under Construction Madagascar Potential Future Grid Potential Future Grid — Alternative Routes

21. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • b. ICT Infrastructure Project Example • SAT3/WASC/SAFE cable project (Marine Fibre Optic Cable Links) • • Benefits: • - Improved and additional intra-Africa connectivity and trade in communication services; • - Broadband state-of-the-art infrastructure for high volume multimedia communications; • - Global connectivity to African countries that otherwise may not have been able to do so individually. • • Cable landing points: • - Portugal, Spain, Canary Islands, Senegal, Cote d’Ivoire, Ghana, Benin, Nigeria, Cameroon, Gabon, Angola, South Africa, Reunion, Mauritius, India, Malaysia

22. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • INFRASTRUCTURE INITIATIVES • SAT 3/WASC & SAFE • Landing Points: • Senegal • Cote d’Ivoire • Ghana • Togo • Benin • Nigeria • Cameroon • Gabon • Niger • Angola • Namibia • South Africa • Mauritius • India • Malaysia • Portugal • Madagascar 16 1 14 5 4 15 2 3 6 7 8 9 10 13 17 11 12

23. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT c. Tourism Anchor Project Example Expanded Okavango Upper Zambezi International Tourism Spatial Development Initiative (Expanded OUZIT Project) Integrated tourism strategy aims at establishing a comprehensive coast-to- coast tourism and resource development zone, built around a core network of Transfrontier Conservation Areas. OUZIT will deliver 15 resorts of US$100 million each by 2010. The project is expected to: • Facilitate the development of projects that will attract more than 17 000 new tourists to Africa per day, which translates into approximately 6.5 million per annum; • Create direct employment opportunities for 90 900 people; and • Provide an estimated US$1.1 billion in fiscal revenue.

24. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • c. Tourism Anchor Project Example (continued…) • • Current Status: • Phase I: Scoping study completed • Official approval for Expanded OUZIT as a regional project • - Phase II: Identify Key Projects(2002-2003) • Identify at least 3 new large scale investments in resort hubs • Support capacity in the management and expansion of Gateway/Resort hubs in participating member states • Identify and engage high profile and active global investors • Address bottlenecks • - Phase III: Project Rollout/Implementation (2003-2012). Estimated cost USD 5 Billion

25. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT d. The Initiative on Pharmaceutical Technology Transfer (IPTT) Vision: • To contribute to generic pharmaceutical development in Africa to improve access to essential drugs at affordable prices for HIV, Tuberculosis, Malaria and related diseases; • To establish a technological platform that will provide value-added benefit to countries by back integrating from importation of finished products to local manufacturing and ultimately to research and development.

26. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT d. The Initiative on Pharmaceutical Technology Transfer (IPTT) (continued…) Benefits: • Foster national scientific and technological capacity; • Create a focal point for a knowledge and skills oriented society, and for a transition into value-added manufacturing; • Increase skilled employment and improve health-seeking behaviour; • Enhance economic self-sufficiency; • Provide long-term sustainable conditions for research and development for drugs for other neglected diseases. Current Status: • Two manufacturing sited to be selected in each Ethiopia, South Africa, Uganda and West Africa; • Ethiopia, South Africa and Uganda have created project teams; • Project costs per manufacturing site estimated to be US$2 million; • Supply of essential drugs to the public sector scheduled to commence end 2003.

27. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • e. Integrated Project Approach • Example: Great African Rift Development Strategy • • Potential Key Sectors: • - Agriculture and Agro-Processing • - Tourism • Minerals • • Potential Outcomes: • - Regional Integration • - Extreme Poverty Relief • - Infrastructure Development and Continental Integration • Electricity Grid • Rail/Road Network • Inland waterways • Liquid Fuels/Gas Grid • Telecommunications

28. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • Great African Rift/Great Lakes Corridor • S. Sudan • Uganda • E. CongoRwanda • Burundi • W. Tanzania • NE Zambia • Malawi • Central Mozambique • Alternative: • Zambia • E. Botswana • W. Zimbabwe • N. South Africa

29. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT Great African Rift Development Strategy (continued…)

30. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 10. THE UNIQUE CONTRIBUTION OF THE NEPAD PROCESS • Strengthening political leadership in: • • Resolving conflicts and consolidating good • political and economic governance; • • Promoting regional and continental economic • integration; • • Accelerating the planning and implementation • of multi-country projects and programmes;

31. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • • Negotiating a new partnership with the • industrialised countries that is based on • mutual responsibility and accountability; • • Building confidence in the future of the • continent; • • Mobilising increased capital flows, both • domestic and external; • • Strengthening Africa’s participation in • international fora.

32. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT 11. WAY FORWARD • • Complete business plans for the next twelve months with • clear goals and time frames and prepare a plan for the next • five years; • • Facilitate implementation • - Accelerate Marketing and Communication • - Engage development partners and multilateral institutions • • Establish partnerships with key African and international • organisations that specialise in the NEPAD priority areas.

33. NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT • • Call on international partners to commit to a sustained • involvement in a partnership with Africa to address poverty • and marginalisation: • - To play an invaluable role as agents for progressive change; • - To support the implementation of NEPAD’s objectives; • - To champion Africa as a destination for foreign direct • investment and private sector investment.